First of all, kudos to this guy. He's happy with his set-up. It works for him and it works for a lot of other people.
That said, I feel the need to warn others who are considering switching to a cloud-based development environment. There are some significant disadvantages to doing development on a remote machine. The biggest issue is that you are dependent on Internet connectivity. If your connection is down, you are dead in the water. If it's slow, you'll get frustrated. Connectivity is only going to get better, but the occasions when you're offline can be very memorable. Additionally, your choice of editors is rather limited. Whatever you use, it has to be terminal-based. A GUI editor like Xcode, Sublime Text 2, or Coda is right-out.
Now let's take a look at the advantages. Cost is mentioned. An iPad is $500-800. A cloud server is $20/month. A maxxed-out 11" MacBook Air is just under $1800. If you throw it away after 2 years (instead of selling it), that's $75/month. In the same time, you'd spend $40-55/month for the iPad/cloud combo. Assuming normal bay area wages, the cost difference isn't worth caring about.
The iPad/cloud setup has one big advantage: battery life. An iPad will last 10 hours. Most laptops can barely do half that. But that's pretty much its only advantage. The laptop beats it in performance, capabilities (you can run VMs and test other OSes/browsers), ergonomics, and expandability. Laptops can also output to larger monitors.
After considering all these things, the best solution is whatever you're most productive using. If you find yourself away from power often, the iPad is your best bet. If you often have slow/nonexistent Internet connectivity or you like to plug into external displays, go with a laptop.
My most productive times are when I'm offline, so my weapon of choice is the 11" MacBook Air. I load it up with the right documentation and virtual machines beforehand. Then I spend the next 5-7 hours writing prodigious amounts of code. At that point both myself and the Air's battery are spent.
Again, I don't mean to imply that the author is mistaken. I simply want to manage expectations for anyone considering following him.